Retail e-payments: Battle between Paytm vs PhonePe intensifies

Paytm has processed 1.2 billion merchant transactions in the first three months of the current financial year, the digital payments provider claimed, even as the battle for a larger share of the overall retail digital payments pie intensifies.

On the other hand, Paytm’s closest rival, the Bengaluru-based PhonePe, claimed it had recorded 90 million merchant transactions through the app in August alone. Paytm processes transactions across multiple modes like mobile wallets, UPI as well as its payment gateway. PhonePe is primarily into UPI payments.

In a note shared with the press, the Noida-based Paytm said these transactions have been processed at more than 14 million retail stores that accept Paytm payments across the country. The company said this did not include any person-to-person payments or money transfer transactions.

“Our latest innovation has enabled more such users to scan any QR code using the Paytm app for instant payments. This has resulted in an increase in the overall transactions for merchant payments and further acceptance in smaller towns,” said Deepak Abbot, senior vice president, Paytm.

PhonePe said it processed 90 million transactions at its 6.5 million merchant base in August alone, across 210 locations in the country.

“Our interoperable QR code makes it easy and affordable for mass retail kirana shops across India to accept digital payments at zero merchant discount rates,” said Vivek Locheb, head of offline business development at PhonePe.

With Unified Payments Interface, the battle over digital payments has come to be dominated by three major players, Google Pay, PhonePe and Paytm.

According to numbers published by the National Payments Corporation of India, the total UPI transactions recorded for August stood at 918 million.

ET wrote in its September 5 edition that the number of payments recorded on UPI by Paytm was 157 million, while it was 340 million for PhonePe and 320 million for Google Pay.